What is Identity Theft?

EPF Last Update: June 7, 2017

Identity theft is one of the biggest consumer theft crimes. It affects millions of Americans every year and costs them billions of dollars.

We at Elite Personal Finance have done our research and published a plethora of content on the subject of identity theft, credit monitoring, and personal finance in general. We have decided to condense this treasure trove information into a single article and tell you exactly what you NEED to know.

Without further ado, let’s answer the most basic question…

What is Identity Theft, Definition?

Identity theft is the crime of obtaining the personal or financial information of another person for the sole purpose of assuming that person’s name or identity to make transactions or purchases.

Identity theft or identity fraud occurs when someone uses your identity to pose as you in order to make purchases, take out loans, see the doctor, or open a new credit card.

The most common form of identity theft is a result of a stolen credit card. The thief will take a stolen credit card and make purchases on it. Sometimes, they will use the credit card as proof of identification, as well.

What Kinds Of Identity Theft Are There?

There are many types of fraud, but some are more common than others. The most common types are:

Credit card fraud. This happens when someone takes your credit card or simply your CC number and CVV code and uses it to make purchases. This is the most common type of identity theft and is easily detected and prevented.

When someone pretends to be you and tries to take out a loan, change your address, or create a new credit card in your name, they’re impersonating you and are committing identity theft.

Social Security fraud. This is when someone uses your SSN to collect benefits in your name. Social Security monitoring can help prevent this theft from going too far.

Mail fraud. Typically, someone will try to change your address using your identity, and then collect your mail looking for more personal information or pre-approved cards.

Who is at Risk?

Everyone is at risk, but some are more at risk than others. Students, who have new credit histories and are offered pre-approved cards all the time, are one of the most at-risk groups for fraud.

Elderly people, who often rely on others to do simple tasks for them such as going to the bank, paying their taxes, or picking up packages, are also at a very high risk.

How Can I Protect Myself from Identity Theft?

Unfortunately, there is no way to prevent identity theft in full!

Fortunately, there are many things that you can do to lower the risk of identity theft!

One of the most common things people do is they buy identity theft protection services. These companies can only help, but not prevent identity theft in full. These days there are many free identity theft protection companies!

Next – educate yourself! Here at ElitePersonalFinance we spend a lot of time to help people find the right information!

There are a few simple tips for protection that anyone can follow.

Be careful what you share on the Internet.

Use different passwords for everything, and only enter banking information on HTTPS shopping sites.

Keep sensitive documents locked away, and shred those you don’t need.

If your wallet gets stolen, cancel all your cards right away. And don’t keep your Social Security card in your wallet! Sometimes your SSN is all a thief needs to use your identity to get loans, jobs, and credit cards.

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